Poor governance

This is with reference to “Falling Re: It’s the fisc, stupid” ( Business Line , August 14.) Public spending follows, almost by default, if private investment is scarce. Private spending couldn’t face up to the challenge following 2008, by itself. That the Government mismanaged its actions is no reason to undermine its plan to ease the situation.

The problem is that investment, both public and private, has lacked wise leadership, with little going into infrastructure development and building up ‘innovation credit’.

Had the so-called ‘knowledge economy’ been engaged in power grid upgrading, perhaps 20 per cent of the current energy deficit would have been eased, leading to that much impetus to production. Transport infrastructure is another area for worthwhile investments. That way, both public and private sectors would thrive.

Devraj Sambasivan

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Ground realities

With reference to “The loneliness of being FM” ( Business Line , August 14), any meaningful reform requires two things. One, there must be progress on issues such as land acquisition, tax and other legal arbitrariness while implementing policies on the ground. Two, the Government must reduce its profligate schemes, which tend to define whole groups of population as needy and then provide doles to them. Several leading industrialists have said how difficult it is to invest in the country and are looking at opportunities outside. When this is the situation, how can the relaxation of FDI rules help?

Parsh V.

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Economy in a spot

With elections round the corner, the Congress seems to be siphoning off money in the name of the poor (Food Security Act). Reservations are being added in key positions (by making constitutional amendments). Transparency is being put on the back-burner.

Our economy will be in a shambles, our neighbours look down upon us and the rupee will slide further. New Delhi must act soon.

Gautam Majumdar

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